Telefónica seeks Canal+ takeover

By Colin Mann

Spanish telco Telefónica has submitted a binding offer of €295 million to Mediaset España to buy its 22 per cent of the share capital of pay-TV operator Canal+ owner Distribuidora de Televisión Digital, SA (DTS).

According to a regulator filing, in addition, Mediaset would be entitled to receive an amount of €10 million in the event that Telefónica closes the acquisition of the 56 per cent stake of DTS held by PRISA, and, in that case, an amount of up to €20 million depending on the development of the pay-TV customers in Spain of the Telefónica Group during the four years following the closing of the acquisition by Telefónica of the 56 per cent stake of DTS held by PRISA.

If the offer is accepted, Mediaset would waive its pre-emptive right relating to the sale to Telefónica of the stake in DTS held by PRISA, receiving as consideration for such waiver an amount of €30 million, in addition to the aforementioned amounts.

This offer is subject to the fulfilment of the customary conditions in this type of transaction.